Is It Possible To Get A Bad Credit Car Loan?

At Like Car Finance, we can arrange car loans for people in many different financial circumstances. Obviously, with an impeccable credit rating and exceptional repayment history, a person is more likely to receive access to the best loan products with the most favourable rates, but very few people have this kind of credit rating in the modern economic climate. Fortunately, we can also help arrange a bad credit car loan for those with adverse and poor credit ratings.

Be Honest About Your Situation

You should have a good idea of the state of your credit history. If you have missed payments and amassed CCJs and defaults against your name, then you won’t have a good credit rating but there are other factors to consider as well. Even whether or not you are registered on the electoral roll can determine whether or not you receive the most favourable rates. Be honest with yourself about your situation because this will help you in the long run.

Self-Employed

There is a greater risk lending money to those that are self-employed. With no fixed salary, underwriting departments can be wary unless they are able to see a history of regular and sizeable payments. If you are self-employed, you may still be able to get a car loan but be prepared to provide bank statements and extensive financial history details.

Bankruptcy

For the first twelve months after declaring yourself bankrupt, you are not allowed to obtain credit of more than £500, and for a period after this you will still be considered a risk to loan companies and insurers. However, Like Car Finance can arrange a bad credit car loan for those that have been discharged for 12 months or more, so do get in touch to see how we can help.

Improve Your Chances

There are ways that you can improve your chances of being granted a bad credit car loan. Ensure you are on the electoral roll, check your credit report and remove any errors or debts that have been repaid, and be prepared to provide more paperwork and documentation to support your application. This will give lenders greater confidence and increase the likelihood of them agreeing to a bad credit car loan.